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What is MTS What are the differences between it and MTO

MTS is an abbreviation for maketostock, which is a type of stock-ready production, where production is planned on the basis of forecasts of market demand and products are kept in stock.

The difference between MTS and MTO is that: the production methods are different, the scope of application is different, the purpose of production is different, and the characteristics are different.

1, the production mode is different

Manufacturing on order (MTO) is to produce by order, the user puts forward a variety of requirements, including product performance, quantity, etc., after negotiation to determine the price and delivery date and other elements, and then organize the design and production.

Manufacturing to stock (MTS) is to produce according to the inventory, that is, according to the existing standard products or product series production, through the finished product inventory at any time to meet user demand.

2, the scope of application is different

Order-type production (MTO) is suitable for incoming material processing, OEM manufacturing.

Stock-type production (MTS) is suitable for domestic sales, independent production.

3, different production purposes

Order-type production (MTO) production out of the finished product are associated with sales orders, suitable for customer stability, more products, big changes in the factory.

Stocking-type production (MTS) to produce finished products are sold on the reduction of inventory stabilization, suitable for customers less stable, lower product value of the factory.

4, the characteristics of different

Stocking-type production (MTS) products with a high degree of standardization, high production efficiency, the user order lead time is short, the inventory level is high, it is difficult to meet the customer's personalized requirements.

Order-type production (MTO) product standardization is low, production efficiency is low, the user order lead time is long, inventory level is low, to meet the customer's high degree of personalization.